US gasoline demand falling amid high costs - API
US gasoline deliveries in May were down from May a year ago and down year-to-date from 2010, though slightly higher than April, according to data released by the American Petroleum Institute (API).
US retail gasoline prices skyrocketed to start 2010 amid rising crude oil costs, owing to supply disruptions in Libya. Prices began to pull back in May as demand softened, but were still well above year-earlier levels.
At 9.2 million bpd, deliveries slipped to an eight-year low for May, not including May 2009.
Total petroleum deliveries, at 19.5 million bpd, were up by 3.7% from last year, continuing to gain as they did in April.
Distillate deliveries rose 7.0% from May 2010 and were at a three-year high, yet remained significantly lower than 2005-2008 levels.
Ultra-low-sulfur distillate deliveries were lower in May than in March and April, the API said.
"The May numbers against a year ago were a mixed bag. Distillate demand showed some strength; gasoline demand declined some," said API chief economist John Felmy.
"Consumers of gasoline may have been adjusting to higher prices by increasing use of public transportation, more telecommuting, more purchases of fuel efficient vehicles and cutting down on discretionary travel."
Despite the softer gasoline demand, gasoline production was 2.0% higher than a year ago, and, at 9.4 million bpd, it was at a record high for any May and a record high for the year to date.
Distillate production, on the other hand, was lower than last year. Refinery utilitization and crude oil runs were below levels of a year ago.
Crude oil production in May fell by 1.6% compared with last year to 5.4 million bpd. On a year-to-date basis, crude oil production was slightly up by 0.3%.
Crude oil production in the lower 48 states fell by 2.7%, while Alaskan crude oil production increased by 8.1%.
According to Baker Hughes, the number of oil and gas rigs jumped from April to May, up by 40 to 1836, a three-year high.
For the first five months of this year, total imports of crude and petroleum products were down 4.6% compared with last year.
Crude imports dropped by 8.8%, while refined product imports continued their year-over- year declines for the fifth month in a row, falling 12.6% in May.
For the fifth month in a row, crude oil inventories continued to build and were at a record high for the month of May since 1980.
All refined product stocks were down compared with May 2010.
Comments